Effect on the economy-s reserves and money supply
Suppose that the reserve requirement for checking deposits is 20 percent and that banks do not hold any excess reserves.
a) If the Fed sells $5 million dollars of government bonds, what is the effect on the economy's reserves and money supply?
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How would you go about identifying the potential costs of the policy initiative, the Economic Costs (explicit and implicit), the social costs, which estimation method would work best for estimating explicit costs?
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Suppose instead that the marginal mining cost increases with the amount mined. What is now the effect on gold consumption and mining of an increased use of gold as money?
If the Fed sells $5 million dollars of government bonds, what is the effect on the economy's reserves and money supply?
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What value from the printout measures the observed level of significance for the variable "gated security", in the regression model?
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